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Buyers retreat as house prices peak

BUYERS are pulling out of the property market as house prices reach their peak. The retreat is putting pressure on sellers to cut prices and is a clear signal that the boom is over.

The number of new buyers has slumped by more than 20% since the first quarter, according to Spicerhaart, an independent estate agency network.

Russell Jervis, the firm’s managing director, said: “Buyers have decided that enough is enough and are not buying properties they think are over-priced. Sellers are being forced to set realistic prices or offer discounts from the asking price to achieve a sale.”

House prices are up 21.5% over the past year, taking the cost of a typical home to £159,735, according to Halifax. Buyers are balking at high prices as the cost of borrowing has risen.

The base rate has gone up four times since November, from 3.5% to 4.5%.